Honda plans to invest $3 billion in a new hybrid vehicle plant in Central Ohio, located between its existing East Liberty and Marysville facilities. The automaker says the facility is designed to meet growing customer demand for hybrid vehicles in North America and will start production in 2029 pending government approvals.
Capacity and Job Creation
The new plant will have an annual capacity of 240,000 vehicles. Honda estimates the project will create more than 2,000 jobs. This investment is part of a broader strategy to strengthen an integrated manufacturing network across the United States, Alabama, and Georgia.
After the expansion, Honda’s annual U.S. production capacity will reach about 1.3 million vehicles, while total North American capacity will approach 1.9 million units. The company also announced a corresponding $118 million investment in Canadian manufacturing facilities to support a workforce of more than 4,000 workers in Ontario.
Honda confirmed plans to invest in its Alliston plant to support next-generation hybrid and gasoline models, including the reintroduction of engine manufacturing. The company is also retooling its Ohio transmission plant to produce two hybrid systems for compact and midsize vehicles in North America.
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Technology and Selection Factors
Honda stated the Ohio site was chosen for its proximity to the U.S. supplier base, nearby development operations, existing manufacturing plants, and the L-H Battery Company. The new facility is intended to be one of the most advanced in the world when it opens in 2029. It will feature leading-edge automation, data-driven technologies, and flexible production systems.
The automation focus aims to improve efficiency and quality. The company is also increasing capacity at its Alabama Auto Plant to allow more flexibility for the Passport SUV and to expand production of a new V-6 hybrid engine at an adjacent plant.
For the new Ohio plant, Honda emphasized close collaboration between its R&D and manufacturing teams. In February, after reporting a $1.7 billion operating loss over nine months amid shifts in U.S. electric vehicle policy, the company confirmed plans to shift automobile and software-defined vehicle development to Honda R&D. Honda cited decelerating market growth for EVs in that period.
By 2030, Honda plans to introduce 15 next-generation hybrids, primarily for North America, along with several new next-generation hybrids for the Acura brand. The shift toward hybrids follows a pivot in May 2025 to expand the hybrid lineup and reduce EV investments by $21 billion.
